2 top ASX growth shares to buy today and hold for 10 years

I’m a big fan of buy and hold investing and believe it is one of the best ways to grow your wealth.

That’s because the longer you invest, the more time you have to let compounding supercharge your returns.

Compounding is what happens when you earn returns on top of returns. It explains why a 10% annual return will turn $10,000 into $11,000 in one year and into $50,000 in 17 years.

And if you can add more funds as you go, then your returns will go up another level.

For example, a $10,000 investment with $1,000 annual contributions that compounds at 10% per annum will become almost $100,000 after 17 years.

With that in mind, let’s now take a look at two ASX growth shares that could be great buy and hold investment options. Here’s why analysts are bullish on them:

Pro Medicus Limited (ASX: PME)

Goldman Sachs thinks that this health imaging technology company could be a great ASX growth share to buy and hold.

And although its shares have rallied higher and are now approaching its price target, Pro Medicus could still be worth holding tightly to for potentially strong long term gains. Goldman commented:

We see PME’s software Visage 7 as an industry leading solution with two distinct advantages relative to peers — speed and cloud capabilities — that have influenced the choice of PACS vendor. Given this, PME is benefiting from an industry network effect, and we forecast share gains to 13% in FY30E (c.7% today) as more hospitals move to modern systems. PME is expanding into adjacent solutions including AI and Cardiology which could provide significant upside given we believe PME is the incumbent technology leader in radiology, and is well-placed to take share in both markets.

The broker has a buy rating and $136.00 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that could be a great buy and hold option is NextDC. It is one of the Asia-Pacific region’s leading data centre operators.

Morgans is very positive on the company’s outlook and is forecasting strong earnings growth in the coming years thanks to the insatiable demand for data centre capacity. It said:

Structural demand for cloud and colocation remains incredibly strong. NXT’s new S3 and M3 data centres are now open. Consequently, we expect significant new customer wins over the next six-to-twelve months (including CSP options being exercised). Sales should drive the share price higher. NXT looks comfortably on-track to generate over $300m of EBITDA in the next three to five years.

The latter compares to NextDC’s underlying EBITDA guidance of $190 million to $200 million in FY 2024.

Morgans has an add rating and $19.00 price target on its shares.

The post 2 top ASX growth shares to buy today and hold for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc and Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.